12-02-2025
UAE: Gold prices drop further after precious metal surpassed $2,900 this week
Gold prices fell further at the opening of the markets in Dubai on Wednesday as the global precious metal slipped below $2,900 per ounce.
At 9am UAE time, 24K fell to Dh347.75 per gram on Wednesday compared to last night's close of Dh349 per gram. Among the other variants, 22K, 21K and 18K fell to Dh323.5, Dh310.25 and Dh266 per gram, respectively.
Globally, spot gold was trading at $2,885.41 per ounce, down 0.73 per cent at 9am UAE time.
Samer Hasn, senior market analyst at said gold surpassed $2,900 per ounce for the first time in history this week.
'Gold's gains come as more chapters of the trade war unfold with Donald Trump talking about his intention to impose more tariffs, including on all steel and aluminium imports,' he said.
The US President announced a 25 per cent tariff on imports of these metals, in addition to imposing retaliatory tariffs for these on US imports. The US imports a quarter of its steel needs and half of its aluminium, with Canada supplying 79 per cent. The US also has the capacity of only 1.73 per cent of the global smelting industry for this metal.
'What we have seen from the beginning of Trump's trade escalation may only be the beginning of a wider war, which could expand to include the European Union and South Korea. Trump's steps will also be met with countermeasures from targeted countries, which in turn could drag Trump into an even broader escalation than before,' he said.
'We must see what Trump will do, not what he says. So far, he has not taken any real steps to implement either of the previous two ideas, which would have catastrophic consequences,' said Hasn.
